Holding overnight with an SB

[adz]

Hello

When doing so do you use a guaranteed stop and if not, how come you are not worried?

thanks

 

[tomorton]

I used to use standard non-guaranteed stops and honestly never found they did not work. However, I got fed up with overnight volatility and widened spreads hitting my stops and these days try to remember to take stops and limit orders off each evening and restore them next morning. Sometimes this is financially not good, sometimes I actually find a position has run further into profit than my target by the time I get to restoring the order, so it roughly balances. I certainly don't have dangerously large positions open overnight.

 

[leonarda]

Hello

When doing so do you use a guaranteed stop and if not, how come you are not worried?

thanks

I don't use automated stops at all, better off not getting caught in the opening 8:01am spreads/spikes.
Not worried because as long as I know my stock i'm not expecting a huge change. Better off being hit by the odd 10-20% loss out of nowhere very infrequently, rather than unnecessary 8:01am losses every few days...!

 

[adz]

thanks for replies..

 

[adz]

I used to use standard non-guaranteed stops and honestly never found they did not work. However, I got fed up with overnight volatility and widened spreads hitting my stops and these days try to remember to take stops and limit orders off each evening and restore them next morning. Sometimes this is financially not good, sometimes I actually find a position has run further into profit than my target by the time I get to restoring the order, so it roughly balances. I certainly don't have dangerously large positions open overnight.

When you say a dangerously large, do you mean a bet size that would lose more than your account if the market collapsed?

thanks

 

[tomorton]

Hi adz - certainly not that big, I have to be able to sleep! - I mean an amount that would lose me a large fraction of my account if the FTSE dropped 500pts overnight. The odds it would drop that far that fast are slim but we could think of scenarios that could do it. But its worth that risk. I've never been 'limit long' or limit short' on anything and its many years since I have been over-exposed to a single share.